Visa launches intelligent decisioning service

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A new fraud reduction service designed to enable financial institutions to easily create, test, and execute card authorization rules has been announced by Visa.

Visa Risk Manager (VRM) will address fraud losses and help issuers approve a greater number of legitimate credit and debit transactions.

According to Visa, VRM is comprised of three services:
  • Visa Rules Manager, a web application that allows issuers to create, test and publish customized decisioning rules using risk information from multiple sources.
  • Visa Real Time Decisioning, which gives financial institutions the capability to allow Visa to act on their behalf to decline or forward to the issuer for action, high-fraud-risk transactions using predefined rules created by the issuer.
  • Visa Case Manager, which enables issuers to view, prioritize and manage transactions that may need further investigation after they have already gone through the normal authorization process.
It is too early in the process to say whether this new Visa fraud detection service will be effective, said Avivah Litan, vice president and distinguished analyst with Gartner. But it should be, she said.

“Visa has a unique advantage over its card issuers in that it can see all the traffic at a given retailer or card acceptor,” Litan told on Friday. “So for example, it could detect that 30 cards issued by 30 card issuers are being used suspiciously at a single electronics retailer, and stop the potential fraud more quickly than each individual issuer presumably could, since the single issuer wouldn't have as much information to establish a suspect pattern.”

Card issuers typically use a number of tools to detect card fraud, she added.

“It is likely that many of them will add the new Visa tool to their arsenal for fighting fraud, if the price is right and the application is as effective as it should be," she said.

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